TaxTMI 
TaxTMI 
Section 80RRA of the Income-tax Act, 1961-Scope of the tax concession
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....ssible only in the case of Government employees and technicians. The Finance (No.2) Act, 1977, has substituted this section by a new section with the object of extending, with effect from the assessment year 1978-79, the scope of the concession to remuneration received by Indian technicians, etc., employed outside India by Indian concerns as well. 2. The deduction under section 80RRA is admissible if the following conditions are fulfilled: (1) The recipient of the remuneration should be a citizen of India. (2) The remuneration would be received in foreign currency from any employer, being the Government of a foreign State or a foreign enterprise or an association or body established outside India or an Indian concern. (3) The re....
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....is admissible in respect of the remuneration for services beyond that period. 3. The Board have received a number of queries regarding the interpretation and applicability of the provisions of section 80RRA. These are clarified as under:- Question No.1: Whether the approval of the Central Government to the terms and conditions of service outside India for the purposes of section 80RRA is enough for granting deduction under that section? Answer: No. The approval of the Central Government to the "terms and conditions of service" in the case of "technicians" is only one of the several conditions for purposes of admissibility of deduction under section 80RRA. In other words, the assessing officers while considering the claims for deduc....
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....n companies can also be regarded as "technicians" within the scope of section 80RRA? Ans.: The Board are advised that the test to be applied in such cases is whether the same work could have been done by any other person without any experience in constructional activities as efficiently as by the applicant. Helpers to masons, who assist in concrete mixing, RCC work, etc., and other persons similarly placed will therefore be regarded as "technicians". Q. No. 5: Whether a seaman, who is employed by an Indian concern and goes out on a voyage for some period and thereafter comes back and goes again for certain period under the same employer, is entitled to deduction under section 80RRA even though the aggregate period of his service outsi....
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....d the Maritime Union of India, such advances are not mere facilities or loan but are in the nature of part payment of wages in foreign currency. Remuneration received by seamen outside India in foreign currency for services rendered outside India would, therefore, qualify for deduction under section 80RRA of the I.T. Act, 1961. Q. No. 8: What is the procedure for obtaining the approval of the Central Government to the terms and conditions of service outside India in the case of technicians? Ans.: For obtaining the approval of the Central Government to the terms and conditions of service outside India in the case of "technicians", every person has to file an application in Form No.ITNS 186 (copy-enclosed*) in triplicate to the Foreign ....